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Currently, there hasn't been a large-scale institutional influx of funds into the crypto market in the West, but the interest from financial institutions is gradually increasing. Once a significant amount of Western institutional funds begins to flow in, it will be something to watch out for.
Despite market volatility, Barhydt is confident that prices will recover later this year, as institutional investors like hedge funds and asset management companies are starting to explore the crypto market. Barhydt told the media:
"I've spoken with some hedge funds, high-net-worth individuals, and even commodity speculators. They all look at the volatility in the crypto markets and see it as a huge opportunity. They believe it's a once-in-a-lifetime thing, and that once the floodgates are opened, it will be a deluge."
Barhydt suggests that financial institutions investing in assets like Bitcoin or Ethereum will bring a "halo effect" to the broader crypto market, and he believes "it's going to happen this year."
Regulatory bodies worldwide have started to rigorously manage the crypto market, with the U.S. Securities and Exchange Commission (SEC) set to review hedge funds investing in crypto in the coming months. However, Barhydt sees this as encouraging for institutional investors, stating:
"In the West, we're getting closer and closer to regulatory clarity, so putting 0.5% of your assets into cryptocurrencies is not a problem."
While 0.5% may seem small for large investment firms, it still translates to billions of dollars, and this could have a significant driving impact on the crypto market. |
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Post time 2-12-2023 07:40:45